How Fractional CFO Services Can Transform Your Small Business in 2025
The Fractional CFO (Chief Financial Officer) world is relatively small and can be confusing. Part of that is because the world of finance and accounting is nuanced and roles can overlap, and part of that is because it’s still a relatively newer service for small businesses.
There are so many benefits to hiring a fractional CFO, even if you don’t think your business is big enough. But knowing what, when, and how to use a CFO can feel overwhelming. In this post we’ll cover:
What is a Fractional CFO?
What are the benefits for Small Businesses?
What Key Financial Areas do They Help With?
Real-Life Success Stories
How to Choose the Right Fractional CFO
What is a Fractional CFO? CFO’s at large fortune 500 companies oversee the entire finance & accounting teams, manage public relations with shareholders, and are the right hand of the CEO and executive team as they make long-term strategic decisions for the business.
A fractional CFO does this, but on a mini scale depending on the needs of your business. The Key takeaway is this: Fractional CFO’s are there to provide LONG-TERM strategic and financial guidance to the business owner or CEO.
A lot of business owners think they just need a tax advisor (CPA) or bookkeeper or they don’t know the difference between any of the functions. I’ve even met people that after I explain only ask about tax savings. That’s only one small part of your financial success. The real juice is when you have a partner helping with your long term strategy and helping you use your money as efficiently as possible so that your profit and business value increases.
What are the benefits for Small Businesses?
Hiring a fractional CFO can feel like a big expense for a small business, especially when it feels like all your outsourced support is between $3-7K / month - it adds up quickly. There are HUGE benefits to having a CFO - and in my experience the right CFO pays for themselves within the 1st 6 months.
The main benefit of having a CFO is managing cash flow, creating budgets, and advising on the best use of cash is to increase revenue. On average, a CFO can increase a businesses net income by 1-15% over 3-6 months.. At Finance Fight Club we’ve seen an average increase of 248% increase in net income for CFO clients that have worked with our team for over 6 months.
Any CFO that isn’t directly involved in strategies to increase revenue is likely not a great one. They shouldn't just be looking and lowering costs, but looking how all the costs of your business are directly increasing your revenue.
What Key Financial Areas do CFO’s help with?
CFOs can help with all the financial areas of your business including: raising funds, seeking a bank loan, creating forecasts & budget, managing cash flow, helping with hiring decisions, lowering costs where needed, managing your bookkeeping & tax team, and creating strategies to increase value and scale your business.
Any CFO that isn’t directly involved in strategies to increase revenue is likely not a great one. They shouldn't just be looking and lowering costs, but looking how all the costs of your business are directly increasing your revenue. A CFO’s main job is to increase your business value and increase your profit (usually profit is referring to net income).
Real-Life Success Stories
Nothing really matters if your CFO can’t deliver. Here are some of our real-life success stories:
A client finally was able to pay herself after 3 years of no pay because she worked with a CFO to optimize her expenses, her team's time and paid down debt using a detailed budget and cash plan.
A client successfully held their first board meeting and worked with their CFO to translate the larger strategy into a story for the investors.
A client successfully increased their net income and owner pay because she worked with her CFO to eliminate unnecessary costs & raised prices using a detailed budget and financial analysis.
A client worked with a CFO on a pricing project to increase gross margin and contribution margin resulting in increased net income.
A client gained confidence in making key decisions in her business because her CFO took the time to explain complex financial language in a non-complex way.
How to Choose the Right Fractional CFO
The world of Fractional CFOs is getting larger and frankly can be very confusing. There’s a few things you should look for to know if a part-time CFO is right for you.
Understand your goals
What are you trying to accomplish?
Do you have specific revenue targets? Owner’s pay targets?
Are you trying to scale quickly or simply have more structure?
Find a CFO that is aligned to your goals and has experience with other clients reaching those goals.
At Finance Fight Club & Copper8 Strategies we focus on growing business and helping business owners gain confidence with their finances. We’re NOT a good fit for the owner who wants to hire a CFO so they can stop paying attention.
Review their scopes and offerings
There’s a spectrum of CFO support ranging from just above bookkeeping & accounting to high level strategy support. Bookkeeping and tax firms that have decided on a whim to offer CFO without any true training are often a red flag and a recipe for disaster (though there are good ones - so we don’t totally discount the ones that bundle).
Make sure the way they offer support is aligned with your expectations. Hiring a Fractional CFO as a 1099 with unlimited hours that acts more like an employee is going to be very different that hiring a Fractional CFO firm with set scopes of works and their set communications styles.
Typically a CFO that works through a firm is managing 6-10 clients at a time and isn’t going to be available at the drop of a hat for a quick chat whereas your 1099 hire might be - but they also might not have the experience or structure that comes with a firm. Or you might find a former CFO that now only takes 2-3 clients at a time and is a great fit.
Have a clear understand of your budget for hiring a CFO
If you’re under $1M in annual revenue (and not making any net income) changes are you can’t hire a fractional CFO starting at $3-5,000 a month - if that sounds like you:
A CFO can also help with this! At Finance Fight Club & Copper8 Strategies we can help create 12 month budgets so you know exactly what you can pay for a CFO.
In a rapidly evolving business world, having the right financial guidance can be a game-changer. With a fractional CFO by your side–you’re leveraging expert insights to drive growth, improve cash flow, and make strategic decisions with confidence. As small businesses navigate new challenges and opportunities in 2025, a fractional CFO offers a tailored solution that adapts to your unique goals and budget. Ready to see how financial clarity and strategic insight can transform your business? Let’s make 2025 the year you take your business to the next level. Go to www.finacefightclub.com to start living your best BUSINESS life.